The Global Brewing Industry

1 Industry Definition2
For the purpose of this business report the global brewing industry is defined as
the group of those companies, that are producing beer and operate on a national or
a global scale. For diversified companies the report focuses on the beer brewing
activities of those respective firms.
2 The Industry's Current Position3
As already predicted by Stewart Gilliland4 of Whitbread PLC as well as many
other industry experts, during the last two years crucial developments have taken
place. First, in terms of industry concentration and global expansion of dominant
players. Second in terms of consumer taste and behaviour which again had an
impact on company's strategies and product portfolios.
2.1 The Markets
The industry's main markets are Western Europe, Eastern Europe, America
including North- and South America, Africa and Asia including China and India.
In each of those regions the industry is in a completely different stage of the
industry lifecycle.5 Moreover population and per capita consumption indicate
growth opportunities and hence potential attractiveness of the respective markets.6
(See: Appendix A and B) [...]

2 "If industries are defined by competitive relationships among firms (…)" Grant, Robert M.
(1998), Contemporary Strategic Analysis, p. 85
3 For the purpose of this report the "position of an industry" is defined as the stage of the industry
within the industry life cycle.
4 "The beer market will change more in the next 5 years than it has in the last 15.", Stewart
Gilliland, Sales & Marketing Director of Whitbread PLC (today part of the Interbrew group),
quoted by The Grocer, 6ht May 2000, in Key Note on "Premium Lagers, Beers & Ciders", Market
Report Plus 2000
5 Heineken, Annual Report 2001, Report of the Executive Board, p. 15
6 Saul Klein (2000), "South African Breweries: Achieving Growth in the Global Beer Market",
ECCH-Collection, p. 6